The target is an exciting, accelerated-growth Vitamins and Supplements Company that has a proven track record as a Middle Market Internet Company. With a Recurring Revenue Rate of 49%, a Trailing Twelve Month Growth Rate of 106%, Revenue of $6.4M and Net Income of just under $4.3 Million, this is an opportunity to take control of a high-growth eCommerce Company that has the real estate necessary on Amazon.com to be a platform of growth for many years to come.
This online company operates in a number of segments within the Vitamins & Supplements Category, including Focus, Weight Loss, Antioxidant, Sleep, Well-Being, Protein, Hair, Prostate, Strength & Testosterone Boosting, Energy and much more. Altogether, the company offers 36 different products, with many of those offered as both single bottle and multi-packs. Many of these products are identified as BEST SELLERS by Amazon within the categories within which they operate.
At the moment, the company generates 99% of its revenue from the Amazon platform where it utilizes Amazon’s Fulfillment by Amazon (FBA) program. FBA manages all pick, pack, ship and storage necessary for all SKUs and also handles most Customer Service. This results in a massive reduction of overhead necessary for this business, thus making the earnings rate around 65% of sales. The company can be operated on a status quo basis with zero employees and no warehouse, and it would not take many employees or much warehouse space to work on scale opportunities.
This is an opportunity for a PE Group, Investor Group or Enterprise to expand their current line of Supplement brands and/or to invest in a rapid-growth Internet Company that has already laid the foundation for scale. The company has over 2 years of proven experience in taking successful product lines to market, and has set the stage for those same products (as well as many more) to be scaled in a number of fashions, including Internationally through the Amazon network, by opening up B2B sales (wholesale), by increasing marketing for the company’s own website, by selling on additional marketplaces, and much, much more. The sky is the limit for this business.
